Amanoi Vietnam Invests VND 800 Billion for 10 New Rooms: Why the Ultra-Luxury Bet?

Amanoi, a high-end resort located in Vietnam's central Khanh Hoa province, is planning a substantial investment of VND 800 billion (approximately $32 million USD) to add just 10 new rooms. This translates to an investment of roughly VND 80 billion ($3.2 million USD) per room, a figure described as exceptionally high not only within Vietnam but also across the region. Luc Van Nerom, co-founder of Amanoi, stated during a recent visit to Vietnam that this investment is justified for the ultra-luxury segment. Aman, established in 1988, is a globally renowned ultra-luxury hotel and resort brand operating 38 properties in 24 countries. Amanoi, the first and only Aman property in Vietnam, opened in 2013 in Vinh Hy Bay, Ninh Thuan province, nestled within the UNESCO-recognized Nui Chua National Park. Despite its expansive grounds, Van Nerom believes an ideal scale is below 90 rooms, with the resort currently featuring 68. Room rates range from tens of millions to hundreds of millions of Vietnamese dong per night, with a 3-night package priced at nearly VND 1 billion (approximately $40,000 USD) launched last year. This expansion is positioned not merely as adding rooms but as an investment in the entire experiential ecosystem, connecting nature, culture, and entertainment, tailored to the needs of ultra-wealthy clientele. The Aman brand prioritizes privacy, with its spacious accommodations balancing guest experience and the preservation of natural landscapes. Sustainability is also a key tenet in the ultra-luxury segment, with Amanoi contributing 1% of its annual revenue to the Nui Chua National Park. Construction methods emphasize manual labor and integration with the natural terrain, preserving existing vegetation and rock formations. Efforts to mitigate environmental impact include reforestation to compensate for relocated trees, wildlife-friendly fencing, and water source replenishment. These initiatives align with the global luxury travel market, projected to reach $1.7 trillion USD this year, where affluent travelers increasingly prioritize experiences and positive impacts on local communities and the environment. Within Vietnam, the high-end hospitality market is shifting from scale expansion to operational quality and management expertise, with sustainable development becoming a competitive advantage. Amanoi's clientele has also evolved, with Millennials and Gen Z now comprising over 60% of guests, valuing authentic experiences and meaningful memories over material luxury. Van Nerom acknowledges potential unforeseen risks but remains confident due to his 20 years of experience in Vietnam and the beauty of Vinh Hy Bay. The Vietnamese tourism market is showing strong recovery, with 12.3 million international visitors in the first half of the year, generating $9 billion USD. However, Van Nerom stresses that while iconic resorts like Amanoi put Vietnam on the global map, sustainable tourism development requires a diverse ecosystem of hotels across all star ratings. He advocates for a "healthy mix" of segments and emphasizes that long-term success lies in a nation's ability to develop tourism while preserving its unique natural and cultural heritage.